On Friday, February 13, 2009, Sherman County Bank, Loup City, NE (with three branches doing business as Howard County Bank) was closed by the Nebraska Department of Banking & Finance, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. As Receiver, the FDIC is charged with winding up the business affairs of the failed financial institution. This includes the disposition of assets and liabilities of the failed financial institution and payment of dividends to approved creditors in order of priority.

The FDIC, as Receiver, has taken all necessary actions to conclude the affairs of the failed financial institution, made all dividend distributions as required by law and the receivership estate is deemed terminated.

The FDIC has issued a press release
(PR-020-2009) about
the institution's closure. If you represent a media outlet and would
like information about the closure, please contact
David Barr at 202-898-6992.

All deposit accounts have been transferred to
Heritage Bank, Wood River, NE
and will be available immediately. On Tuesday,
February 17, 2009,
the former Sherman County Bank locations will reopen as
branches of
Heritage Bank.

Your transferred deposits will be separately insured from any accounts
you may already have at Heritage Bank for six
months after the failure of Sherman County Bank. Checks
that were drawn on Sherman County Bank that did not
clear before the institution closed will be honored as long as there are
sufficient funds in the account. If you have questions about your account(s) transferred to the assuming bank, you may speak to an FDIC
representative regarding deposit insurance by calling: 1-800-823-5346.

You may withdraw your funds from any transferred
account without an early withdrawal penalty until you enter into a new deposit
agreement with Heritage Bank as long as
the deposits are not pledged as collateral for loans. You may view more
information about Heritage Bank by visiting their web site.